Multilateral Aid Review summary - European Bank for Reconstruction and Development (EBRD)

The EBRD supports the transition towards democratic market economies of Central and Eastern Europe, Central Asia and Turkey. It primarily finances private sector organisations at near market terms.

	comment
Contribution to UK development objectives	Weak
	+	EBRD has a leading role in supporting the transition and lead multilateral on climate finance in the region.
	_	EBRD’s geographical focus on Europe and Central Asia does not match with DFID’s focus on regions with higher poverty levels.
	_	The link between the impact of EBRD’s programmes on transition, and their impact on people’s lives is not always well articulated.
	+	Strong and demonstrated delivery against EBRD’s own challenging transition objectives.
	+	Better packaging of technical assistance and lending would sometimes have wider systemic effect.
	_	Until 2009, management support for gender had not been demonstrably strong.  A new Gender Action Plan is now in place, but it is too early to evaluate results.
Organisational strengths	Strong
	+	Comprehensive results and performance system with evidence of strong strategic stewardship by Board and pro-active portfolio management.
	+	Flexible and innovative use of financial instruments, not overly constrained by financial policies.
	+	Continued budget constraint and active budget management – evidence of active re-prioritisation.
	+	Comprehensive and appropriate disclosure policy.
	_	Strong partnership behaviour during crisis, but sometimes criticised for working against sector reforms.
	_	Recipient countries’ voting share is low
Capacity for positive change	Likely
	+	EBRD is an effective, well run organisation with a strong track record of continually improving its operations and effectiveness.
	+	EBRD likely to become increasingly important in tackling climate change.